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eldavojohn writes "According to AfterDawn, Google has given app makers the option to use a license server as DRM to ensure the user has paid for an app before they can download it. Reportedly, the Market app will communicate with a Google license server using RSA encryption. It is important to note this is only available for non-free apps (built with SDK 1.5 and later), and it was instituted to provide a better solution to the old and widely criticized copy protection scheme that was susceptible to Android app piracy (like sideloading). For better or for worse, Android's Marketplace appears to now have an optional, phone-home form of DRM."
Following news of the new licensing service, Hexage Ltd, makers of a popular Android game called Radiant, released the data they had collected on piracy of Radiant over a 10-month period beginning last October. A series of charts shows total users, paid users and the piracy rate, by region.

it has more to do with catering to legacy companies who think that they can somehow combat piracy. In reality, costs go down significantly over time for ongoing software development, so even if a small subset of the folks pirating slowly convert over time you're only going to continue to make more and more money.

Also, a lot of people disagree with paying for apps as that goes against the purpose and concept of free software (and associated benefits/gains).